Harless Tax Blog

Harless Tax Blog

Small-business owners look to grab this 20 percent tax break

Monday, February 04, 2019

Source from cnbc.com | Small-business owners filing their 2018 taxes may be able to take advantage of a brand-new 20 percent tax break.

One of the new features of the Tax Cuts and Jobs Act is the introduction of the qualified business income deduction, which went into effect last year.

This tax break allows owners of “pass-through” entities, including sole proprietorships, S-corporations and partnerships, to deduct up to 20 percent of their qualified business income. See More

IRS reminds employers, business owners of Jan. 31 filing deadline

Friday, December 14, 2018

Source from irs.gov | WASHINGTON — The Internal Revenue Service today reminded employers and other businesses that Jan. 31 remains the filing deadline for wage statements and independent contractor forms.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 started a requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.  See More

e-News for Small Business

Wednesday, November 28, 2018

Source from irs.gov | e-News for Small Business, Issue 37.
1)  Here’s how tax reform changed accounting methods for small businesses
The Tax Cuts and Jobs Act — better known simply as tax reform — allows more small business taxpayers to use the cash method of accounting. The new law defines a small business taxpayer as a taxpayer who has average annual gross receipts of $25 million or less for the three prior tax years and is not a tax shelter.  See More

Several tax law changes may affect bottom line of many business owners

Friday, October 19, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service today reminded business owners that tax reform legislation passed last December affects nearly every business.

With just a few months left in the year, the IRS is highlighting important information for small businesses and self-employed individuals to help them understand and meet their tax obligations. See More

IRS issues guidance on Tax Cuts and Jobs Act changes on business expense

Wednesday, October 10, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA).

The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.

Taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact.  See More

Tax facts for seasonal job seekers

Thursday, September 20, 2018

Source from irs.gov
Small business owners and self-employed taxpayers often get seasonal jobs to earn extra spending money or to save for later. But many don't realize that they need to report income from a part-time or temporary job to the IRS.

The IRS offers this fact sheet for those working seasonal jobs and other part-time employment to help them correctly file and pay their taxes. See also:

Tax Reform
Publication 505, Tax Withholding and Estimated Tax
Understanding Employment Tax  See More

IRS launches new easy-to-use webpages on tax reform

Wednesday, September 19, 2018

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Clarification for business taxpayers: Payments under state or local tax credit programs may be deductible as business expenses

Tuesday, September 18, 2018

Source from irs.gov
WASHINGTON — Business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payments as business expenses, the Internal Revenue Service said today.

Responding to taxpayer inquiries, the IRS clarified that this general deductibility rule is unaffected by the recent notice of proposed rulemaking concerning the availability of a charitable contribution deduction for contributions pursuant to such programs. The business expense deduction is available to any business taxpayer, regardless of whether it is doing business as a sole proprietor, partnership or corporation, as long as the payment qualifies as an ordinary and necessary business expense. Therefore, businesses generally can still deduct business-related payments in full as a business expense on their federal income tax return.  See More

An estimated tax payment in 2018 could help avoid a penalty in 2019

Monday, September 17, 2018

Source from irs.gov
Taxes must be paid as you earn or receive income during the year, either through withholding, estimated tax payments or a combination of both. A Paycheck Checkup using the IRS Withholding Calculator can help you see if you need to make an additional payment to avoid an unexpected tax bill or underpayment penalty when you file your tax return next year.

You may need to make estimated payments if you:

— have multiple jobs—especially if you don’t have each employer withhold taxes
— are self-employed or an independent contractor
— are a representative of a direct-sales or in-home-sales company
— participate in sharing economy activities where you are not working as an employee
— receive pension income

IRS.gov to learn more. See More

Best Deductions For a Small Business for Tax Season

Monday, April 10, 2017

Source: inc.com
Tax season can be one of the most stressful times of the year for business owners. However, it's necessary if you want to avoid audits or getting penalized by the IRS.

But, tax season is also beneficial for business owners since it can help you deduct certain expenses, which means that you can reduce your overall tax burden.

To make sure that you don't leave any money on the table, here are the best deductions for small businesses to write-off this upcoming tax season.  See More